China's imports unexpectedly dropped 2.4% year on year to $158.63Bn in August, while exports increased by 9.4% y/y, according to data released by the General Administration of Customs (GAC) .

A 3% y/y growth in imports was projected previously. The drop in August followed a 1.6% decline in July.

The weaker-than-expected imports were attributed to soft domestic demand as well as falling commodity prices in international markets, said Chinese economists.

Soft import growth is expected to continue in the second half of this year.